Dan Ariely: How to change your behavior for the better
The dismal science of economics is not as firmly grounded in actual behavior as was once supposed. In "Predictably Irrational," Dan Ariely told us why. Full bio
Double-click the English transcript below to play the video.
that I have half a beard.
That's just how it happened.
about where is the potential for humanity
there's a big gap
and where we are,
have eaten more than you think you should?
exercised less than you think you should?
has raising your hands twice
texted while driving?
Let's test your honesty.
when you left the bathroom?
willing to admit texting and driving
that's difficult.
that there's lots of things
but we're acting in a very different way.
how do we bridge that gap,
that texting and driving is dangerous.
You should stop doing it.
is dangerous, and they will stop.
is that in the US,
and eight hundred million dollars a year
as a consequence of that?
at all the research ever to be conducted
what's called a meta-analysis.
when you tell people,
three or four percent
to zero as possible.
information to people
to change behavior.
has made lots of strides,
if we want to change behavior,
it's to change the environment.
model of how to think about it:
sending a rocket to space.
sending a rocket to space,
and have as little friction as possible
to load as much fuel as possible,
of motivation, energy to do its task.
I'll tell you about,
to you a medication,
in the mail every 90 days.
medication, medication.
wants to switch people
to generic medication.
switch to generics.
your employer will save money."
and nothing happens.
an amazing offer.
it will be free for a whole year."
do you think switched?
on the "allure of free."
that if you reduce the price of something
nothing much happens.
now people get excited.
papers on 'free,' we gave 'free.'
it's a question of friction."
generic over branded,
a "confounded design."
versus doing something.
and say, 'We're switching you to generics.
please return the letter.'"
and creativity,
and immoral, it's fine,
in the brainstorming phase.
the branded had the no-action benefit.
generic had the no-action benefit.
a T-intersection:
to stop your medications.
you could choose branded at this price,
the no-action benefit.
or do we like branded?
small things really matter.
the desired behavior
too much friction
from acting on it?
that the desired behavior
We talked about friction.
in a slum called Kibera in Kenya
for a rainy day.
you have no extra money,
you have nothing to draw on, you borrow.
up to 10 percent interest a week.
it's really hard to get out of it.
something bad happens,
and worse and worse.
a little bit of money for a rainy day.
what is the motivation,
once a week and said,
about a dollar -- "this week."
as if it came from their kids.
this is little Joey" --
for the future of our family."
of guilt always works.
we'll give you 10 percent."
10 percent and 20 percent,
that we hate losing
who is in a 10-percent condition
we give them four more,
if they gave a hundred,
at the beginning of the week.
we say, "Oh, you put 40 in,
and we're taking six back."
leaving their account.
10 percent, 20 percent,
somewhere in their hut,
and scratch the number for that week --
if they didn't save
do you think worked the best?
10 percent, 20 percent,
end of the week, and the coin?
the average people think.
will get a lot of action,
will have a small effect.
People forget. Reminding people is great.
of the week helped some more.
just like 10 percent, no difference.
the beginning of the week,
of the week, no difference.
was just as effective
messages from kids were.
we don't use kids enough.
in a child labor sense.
parents and their kids,
source of motivation
of this study was the coin.
compared to everything else.
What was it about the coin?
thinking about the coin,
on, let's say, buying coffee,
I can sit in my office.
I know how it works.
of the poorest places in the world,
and see what's going on
about how the system works.
in South Africa,
that sells funeral insurance.
crazy amounts of money on weddings?
or two years of income on funerals.
Africans as being irrational with this,
on funerals compared to weddings,
you only have one.
that sells funeral insurance.
his son is about 12 --
of his funeral expense
they buy small amounts of insurance
he gives it to his son.
I think to myself, why the ceremony?
that decides on that particular day
into insurance or savings.
be less food, less kerosene, less water --
and what our coin was trying to do
food on the table,
many good, important economic activities,
that are invisible.
How do we make them visible?
look at the system
we can fix, with friction,
that we can remove friction?
is to think broadly about the system,
can we bring in?
what would work best.
Is it going to be loss aversion?
something that is visible?
to try different things.
our intuition sometimes misleads us.
what would work the best.
and where we are,
and to think about it.
there's lots we can do.
some of the changes are more complex.
more information to people
Absolutely, yes.
ABOUT THE SPEAKER
Dan Ariely - Behavioral economistThe dismal science of economics is not as firmly grounded in actual behavior as was once supposed. In "Predictably Irrational," Dan Ariely told us why.
Why you should listen
Dan Ariely is a professor of psychology and behavioral economics at Duke University and a founding member of the Center for Advanced Hindsight. He is the author of the bestsellers Predictably Irrational, The Upside of Irrationality, and The Honest Truth About Dishonesty -- as well as the TED Book Payoff: The Hidden Logic that Shapes Our Motivations.
Through his research and his (often amusing and unorthodox) experiments, he questions the forces that influence human behavior and the irrational ways in which we often all behave.
Dan Ariely | Speaker | TED.com